U.S. SECURITIES AND EXCHANGE COMMISSION
LITIGATION RELEASE NO. 15977 / November 17, 1998
SECURITIES AND EXCHANGE COMMISSION V. STEPHEN J. MURPHY
Civil Action No. CV 97-2719 JMI (CWx) (C.D. Cal.)
The Securities and Exchange Commission ("Commission")
announced that on September 29, 1998, the Honorable Terry J.
Hatter, Chief United States District Judge, entered a final
judgment against Stephen J. Murphy ("Murphy") permanently
enjoining him from violating the antifraud provisions of the
federal securities laws. The final judgment also sets
disgorgement of Murphy's ill-gotten gains at $377,500 and pre-
judgment interest thereon at $48,551 but waives payment of these
amounts, and does not impose civil penalties, based upon Murphy's
demonstrated inability to pay.
In its Complaint, the Commission alleges that Murphy offered
and sold limited partnership interests through a Los Angeles
company doing business as ATM Global, Inc.. The Commission
alleges that, in offering and selling the limited partnership
interests to investors, Murphy misrepresented his identity by
using the aliases "Jack Davis," "Gregg Davis" and "Mike Fox."
Furthermore, Murphy failed to disclose the entry of, and the
terms of, a 1994 Final Judgment entered against him in an earlier
Commission action enjoining him from future fraud and
registration violations of the federal securities laws. SEC v.
American Capital Investments, et al., Civil Case No. CV-93-5280
CBM (JRx)(C.D. Cal.)(Lit Rel. No. 14185). In that case, the
Commission alleged that Murphy fraudulently offered and sold
investments in real estate ventures. Murphy also failed to
disclose that, in 1994, the Commission had revoked his
registration as an investment adviser and barred him from the
securities industry. Murphy further failed to disclose that
another company he owned and managed, American Capital
Investments, Inc., was placed into receivership.
The final judgment enjoins Murphy from future violations of
Section 17(a) of the Securities Act of 1933, Section 10(b) of the
Securities Exchange Act of 1934 and Rule 10b-5 thereunder.
Murphy consented to the entry of the final judgment without
admitting or denying the Commission's allegations.